It was a shock to many on Wednesday when Blizzard announced that it would be cutting 600 positions from the company, including many support and customer service jobs and even some developer spots. Very sad news for a great group of people, absolutely. Maybe we can do a little digging and figure out why Blizzard cut these positions and make some sense of it.
You don't just cut workers "because." Activision Blizzard is a publicly traded company in the United States, where corporations are beholden to their shareholders, profits, and the bottom line. We still live in a world where the price of stock is paramount, so raising the price of stock combined with investor satisfaction is key. Every decision by Activision Blizzard must, at the end of the day, be made with the knowledge that the investors matter.
Let's start with what employee staff reductions do not mean. Blizzard is not going broke or bankrupt because of these 600 jobs. World of Warcraft, StarCraft, Diablo, and unannounced titles are still being developed and pored over. Mike Morhaime himself said that the active positions cut were mostly non-developmental, which leaves support, customer service, and potential redundancies in the company's structure. All in all, 600 jobs is a large enough number that there is a reason for all of this.